AGRIBUSINESS | Staff Reporter, Singapore

Golden Agri-Resources back in the black with $310m 3Q profit

It previously posted a $23m net loss.

Amidst weaker palm product output, Golden Agri-Resources (GAR) managed to deliver better results in 3Q and 9M ending September buoyed by its integrated business model and the appreciation of crude palm oil (CPO) market prices.

For the nine-month period of 2016, revenue of GAR increased to US$5.1b (S$7.21b).

EBITDA and net profit, meanwhile, registered at US$393m (S$555m) and US$353m (S$499m), respectively. It suffered a US$16m (S$23m) net loss during 3Q2015.

Third quarter EBITDA and net profit recovered to US$165m (S233m) and US$220m (S$310m) respectively.

Net profit was also lifted by the deferred tax income arising from the increase in tax depreciable value of its plantation assets. For future tax benefit, GAR revalued some of its plantation assets in Indonesia resulting in substantial deferred tax income contributing to its current bottom line.

The net tax impact recorded from this revaluation was US$242m (S$342m) in the nine-month period of 2016 including US$111m (S$157m) in the third quarter.

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